Basic earnings (loss) per common share $ (0.20) $ (0.23) $ 0.34 $ 0.09 Weighted average common shares outstanding 1,198 1,265 1,222 1,283

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1 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in millions, except per share data) Three Months Ended December 31, Year Ended December 31, Net revenues: Product sales $ 1,061 $ 1,232 $ 3,087 $ 3,080 Subscription, licensing and other revenues ,360 1,199 Total net revenues 1,427 1,557 4,447 4,279 Costs and expenses: Cost of sales - product costs ,350 1,432 Cost of sales - massively multi-player online role playing game ("MMORPG") Cost of sales - software royalties and amortization Cost of sales - intellectual property licenses Product development Sales and marketing General and administrative Impairment of intangible assets Restructuring --- (6) Total costs and expenses 1,824 1,989 3,978 4,305 Operating income (loss) (397) (432) 469 (26) Investment and other income, net 8 (3) Income (loss) before income tax expense (389) (435) 492 (8) Income tax (benefit) expense (156) (149) 74 (121) Net income (loss) $ (233) $ (286) $ 418 $ 113 Basic earnings (loss) per common share $ (0.20) $ (0.23) $ 0.34 $ 0.09 Weighted average common shares outstanding 1,198 1,265 1,222 1,283 Diluted earnings (loss) per common share $ (0.20) $ (0.23) $ 0.33 $ 0.09 Weighted average common shares outstanding assuming dilution 1,198 1,265 1,236 1,311

2 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, December 31, ASSETS Current assets: Cash and cash equivalents $ 2,812 $ 2,768 Short-term investments Accounts receivable, net Inventories Software development Intellectual property licenses Deferred income taxes, net Other current assets Total current assets 5,385 5,329 Long-term investments Software development Intellectual property licenses Property and equipment, net Other assets 21 9 Intangible assets, net Trademark and trade names Goodwill 7,132 7,154 Total assets $ 13,406 $ 13,742 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Accounts payable $ 363 $ 302 Deferred revenues 1,726 1,426 Accrued expenses and other liabilities Total current liabilities 2,907 2,507 Deferred income taxes, net Other liabilities Total liabilities 3,203 2,986 Shareholders equity: Common stock Additional paid-in capital 12,353 12,376 Treasury stock (2,194) (1,235) Retained earnings (accumulated deficit) 57 (361) Accumulated other comprehensive loss (13) (24) Total shareholders equity 10,203 10,756 Total liabilities and shareholders equity $ 13,406 $ 13,742

3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended December 31, Year Ended December 31, Cash flows from operating activities: Net income (loss) $ (233) $ (286) $ 418 $ 113 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income taxes (329) (185) (278) (256) Impairment of intangible assets Depreciation and amortization Loss on disposal of property and equipment Amortization and write-off of capitalized software development costs and intellectual property licenses (1) Stock-based compensation expense (2) Excess tax benefits from stock options exercises (11) (11) (22) (79) Changes in operating assets and liabilities: Accounts receivable (395) (513) Inventories Software development and intellectual property (75) (79) (313) (308) Other assets (201) (163) 17 (110) Deferred revenues 1, Accounts payable (18) Accrued expenses and other liabilities (113) Net cash provided by operating activities ,376 1,183 Cash flows from investing activities: Proceeds from maturities of investments Proceeds from sale of available-for-sale investments Payment of contingent consideration (4) --- Purchases of available-for-sale investments (119) (197) (800) (425) Capital expenditures (21) (28) (97) (69) Decrease in restricted cash Net cash provided by (used in) investing activities 11 (145) (312) (443) Cash flows from financing activities: Proceeds from issuance of common stock to employees Repurchase of common stock (346) (275) (959) (1,109) Dividends paid (2) --- (189) --- Excess tax benefits from stock option exercises Net cash used in financing activities (318) (246) (1,053) (949) Effect of foreign exchange rate changes on cash and cash equivalents 3 (14) Net increase (decrease) in cash and cash equivalents (190) Cash and cash equivalents at beginning of period 2,123 2,360 2,768 2,958 Cash and cash equivalents at end of period $ 2,812 $ 2,768 $ 2,812 $ 2,768 (1) Excludes deferral and amortization of stock-based compensation expense. (2) Includes the net effects of capitalization, deferral, and amortization of stock-based compensation expense.

4 SUPPLEMENTAL FINANCIAL INFORMATION Three Months Ended Year over Year December 31, March 31, June 30, September 30, December 31, % Increase (Decrease) Cash Flow Data Operating Cash Flow $ 813 $ 227 $ (26) $ 182 $ % Operating Cash Flow - TTM 1,183 1,083 1,175 1,196 1, Capital Expenditures (25) Capital Expenditures - TTM Non-GAAP Free Cash Flow (53) Non-GAAP Free Cash Flow - TTM $ 1,114 $ 1,012 $ 1,091 $ 1,092 $ 1, % TTM represents trailing twelve months. Non-GAAP free cash flow represents operating cash flow minus capital expenditures.

5 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES (Amounts in millions, except earnings per share data) Three Months Ended December 31, 2010 Net Revenues Product Costs MMORPG Software Royalties and Amortization Intellectual Property Licenses Product Development Sales and Marketing General and Administrative Impairment of Intangible Assets Total Costs and Expenses GAAP Measurement $ 1,427 $ 585 $ 73 $ 128 $ 92 $ 275 $ 226 $ 119 $ 326 $ 1,824 Less: Net effect from deferral in net revenues and related cost of sales (a) 1, Less: Stock-based compensation (b) (14) - (8) (2) (13) - (37) Less: Restructuring (included in general and administrative) (c) Less: Amortization of intangible assets and purchase price accounting related adjustments (d) - (2) - (6) (69) (77) Less: Impairment of intangible assets (e) (326) (326) Non-GAAP Measurement $ 2,548 $ 783 $ 73 $ 153 $ 40 $ 267 $ 224 $ 107 $ - $ 1,647 Three Months Ended December 31, 2010 Operating Income (Loss) Net Income (Loss) Basic Earnings (Loss) per Share Diluted Earnings (Loss) per Share GAAP Measurement $ (397) $ (233) $ (0.20) $ (0.20) Less: Net effect from deferral in net revenues and related cost of sales (a) Less: Stock-based compensation (b) Less: Restructuring (included in general and administrative) (c) (1) Less: Amortization of intangible assets and purchase price accounting related adjustments (d) Less: Impairment of intangible assets (e) Non-GAAP Measurement $ 901 $ 655 $ 0.54 $ 0.53 Year Ended December 31, 2010 Net Revenues Product Costs MMORPG Software Royalties and Amortization Intellectual Property Licenses Product Development Sales and Marketing General and Administrative Impairment of Intangible Assets Total Costs and Expenses GAAP Measurement $ 4,447 $ 1,350 $ 241 $ 338 $ 197 $ 642 $ 520 $ $ 3,978 Less: Net effect from deferral in net revenues and related cost of sales (a) Less: Stock-based compensation (b) (65) - (12) (8) (46) - (131) Less: Restructuring (included in general and administrative) (c) (3) - (3) Less: Amortization of intangible assets and purchase price accounting related adjustments (d) - (5) - (15) (102) - - (1) - (123) Less: Impairment of intangible assets (e) (326) (326) Non-GAAP Measurement $ 4,803 $ 1,348 $ 241 $ 287 $ 100 $ 630 $ 512 $ 314 $ - $ 3,432 Year Ended December 31, 2010 Operating Income Net Income Basic Earnings per Share Diluted Earnings per Share GAAP Measurement $ 469 $ 418 $ 0.34 $ 0.33 Less: Net effect from deferral in net revenues and related cost of sales (a) Less: Stock-based compensation (b) Less: Restructuring (included in general and administrative) (c) Less: Amortization of intangible assets and purchase price accounting related adjustments (d) Less: Impairment of intangible assets (e) Non-GAAP Measurement $ 1,371 $ 991 $ 0.81 $ 0.79 (a) Reflects the net change in deferred net revenues and related cost of sales. (b) Includes expense related to stock-based compensation. (c) Reflects restructuring related to the Business Combination with Vivendi Games. Restructuring activities includes severance costs, facility exit costs and balance sheet write down and exit costs from the cancellation of projects. (d) Reflects amortization of intangible assets, and the change in the fair value of assets and liabilities from purchase price accounting related adjustments. (e) Reflects impairment of intangible assets acquired as a result of purchase price accounting. The per share adjustments are presented as calculated, and the GAAP and non-gaap earnings per share information is also presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding.

6 RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES (Amounts in millions, except earnings per share data) Three Months Ended December 31, 2009 Net Revenues Product Costs MMORPG Cost of Sales - Software Royalties and Amortization Intellectual Property Licenses Product Development Sales and Marketing General and Administrative Impairment of Intangible Assets Restructuring Total Costs and Expenses GAAP Measurement $ 1,557 $ 670 $ 54 $ 136 $ 152 $ 265 $ 215 $ 94 $ 409 $ (6) $ 1,989 Less: Net effect from deferral in net revenues and related cost of sales (a) Less: Stock-based compensation (b) (16) - (12) 1 (20) - - (47) Less: Costs related to the Business Combination, integration and restructuring (c) Less: Amortization of intangible assets and purchase price accounting related adjustments (d) - (1) - (29) (112) (142) Less: Impairment of intangible assets (e) (409) - (409) Non-GAAP Measurement $ 2,495 $ 863 $ 54 $ 107 $ 44 $ 253 $ 216 $ 74 $ - $ - $ 1,611 Three Months Ended December 31, 2009 Operating Income (Loss) Net Income (Loss) Basic Earnings (Loss) per Share Diluted Earnings (Loss) per Share GAAP Measurement $ (432) $ (286) $ (0.23) $ (0.23) Less: Net effect from deferral in net revenues and related cost of sales (a) Less: Stock-based compensation (b) Less: Costs related to the Business Combination, integration and restructuring (c) (6) (4) - - Less: Amortization of intangible assets and purchase price accounting related adjustments (d) Less: Impairment of intangible assets (e) Non-GAAP Measurement $ 884 $ 632 $ 0.50 $ 0.49 Year Ended December 31, 2009 Net Revenues Product Costs MMORPG Cost of Sales - Software Royalties and Amortization Intellectual Property Licenses Product Development Sales and Marketing General and Administrative Impairment of Intangible Assets Restructuring Total Costs and Expenses GAAP Measurement $ 4,279 $ 1,432 $ 212 $ 348 $ 315 $ 627 $ 544 $ 395 $ 409 $ 23 $ 4,305 Less: Net effect from deferral in net revenues and related cost of sales (a) (4) (2) Less: Stock-based compensation (b) (34) - (40) (9) (71) - - (154) Less: Results of Activision Blizzard's non-core exit operations (f) (1) (3) (10) - - (9) Less: Costs related to the Business Combination, integration and restructuring (c) (24) - (23) (47) Less: Amortization of intangible assets and purchase price accounting related adjustments (d) - (5) - (66) (186) - - (2) - - (259) Less: Impairment of intangible assets (e) (409) - (409) Non-GAAP Measurement $ 4,775 $ 1,542 $ 212 $ 244 $ 127 $ 591 $ 537 $ 288 $ - $ - $ 3,541 Basic Diluted Operating Earnings per Earnings per Year Ended December 31, 2009 Income (Loss) Net Income Share Share Basic 591 GAAP Measurement $ (26) $ 113 $ 0.09 $ 0.09 Less: Net effect from deferral in net revenues and related cost of sales (a) Less: Stock-based compensation (b) Less: Results of Activision Blizzard's non-core exit operations (f) Less: Costs related to the Business Combination, integration and restructuring (c) Less: Amortization of intangible assets and purchase price accounting related adjustments (d) Less: Impairment of intangible assets (e) Non-GAAP Measurement $ 1,234 $ 910 $ 0.70 $ 0.69 (a) Reflects the net change in deferred net revenues and related cost of sales. (b) Includes expense related to stock-based compensation. (c) Reflects costs related to the Business Combination with Vivendi Games (including transaction costs, integration costs and restructuring activities). Restructuring activities includes severance costs, facility exit costs and balance sheet write down and exit costs from the cancellation of projects. (d) Reflects amortization of intangible assets, and the change in the fair value of assets and liabilities from purchase price accounting related adjustments. (e) Reflects impairment of intangible assets acquired as a result of purchase accounting. (f) Reflects the results of products and operations from the historical Vivendi Games businesses that the company has exited, divested or wound down. The per share adjustments are presented as calculated, and the GAAP and non-gaap earnings per share information is also presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding.

7 FINANCIAL INFORMATION For the Three Months and Year Ended December 31, 2010 and 2009 Three Months Ended GAAP Net Revenues by Distribution Channel Retail channel $ % $ 1, % $ (180) (18) % Digital online channel* Total Activision and Blizzard 1, , (102) (8) Distribution (28) (13) Total consolidated GAAP net revenues 1, , (130) (8) Change in Deferred Net Revenues 1 Retail channel 1, Digital online channel* 62 5 Total changes in deferred net revenues 1, Non-GAAP Net Revenues by Distribution Channel Retail channel 1, , (54) (3) Digital online channel* Total Activision and Blizzard 2, , Distribution (28) (13) Total non-gaap net revenues 2 $ 2, % $ 2, % $ 53 2 % Year Ended GAAP Net Revenues by Distribution Channel Retail channel $ 2, % $ 2, % $ 7 - % Digital online channel* 1, , Total Activision and Blizzard 4, , Distribution (45) (11) Total consolidated GAAP net revenues 4, , Change in Deferred Net Revenues 1 Retail channel Digital online channel* Total changes in deferred net revenues Non-GAAP Net Revenues by Distribution Channel Retail channel 2, , (207) (7) Digital online channel* 1, , Total Activision and Blizzard 4, , Distribution (45) (11) Total non-gaap net revenues 2 $ 4, % $ 4, % $ 28 1 % 1 We provide net revenues including (in accordance with GAAP) and excluding (non-gaap) the impact of changes in deferred net revenues. 2 Total non-gaap net revenues presented also represents our total operating segment net revenues. * Represents revenues from subscriptions and licensing royalties, value added services, downloadable contents, digitally distributed products, and wireless devices.

8 FINANCIAL INFORMATION For the Three Months Ended December 31, 2010 and 2009 Three Months Ended GAAP Net Revenues by Segment/Platform Mix Activision and Blizzard: MMORPG $ % $ % $ % PC and other Sony PlayStation Sony PlayStation (47) (89) Microsoft Xbox (43) (13) Nintendo Wii (119) (46) Total console (178) (21) Sony PlayStation Portable (10) (63) Nintendo Dual Screen (24) (24) Total handheld (34) (29) Total Activision and Blizzard 1, , (102) (8) Distribution: Total Distribution (28) (13) Total consolidated GAAP net revenues 1, , (130) (8) Change in Deferred Net Revenues 1 Activision and Blizzard: MMORPG PC and other Sony PlayStation Microsoft Xbox Nintendo Wii Total console Nintendo Dual Screen Total changes in deferred net revenues 1, Non-GAAP Net Revenues by Segment/Platform Mix Activision and Blizzard: MMORPG PC and other Sony PlayStation Sony PlayStation (47) (89) Microsoft Xbox (31) (4) Nintendo Wii (122) (36) Total console 1, , (119) (7) Sony PlayStation Portable (10) (63) Nintendo Dual Screen (16) (16) Total handheld (26) (22) Total Activision and Blizzard 2, , Total Distribution (28) (13) Total non-gaap net revenues 2 $ 2, % $ 2, % $ 53 2 % 1 We provide net revenues including (in accordance with GAAP) and excluding (non-gaap) the impact of changes in deferred net revenues. 2 Total non-gaap net revenues presented also represents our total operating segment net revenues.

9 FINANCIAL INFORMATION For the Year Ended December 31, 2010 and 2009 Year Ended GAAP Net Revenues by Segment/Platform Mix Activision and Blizzard: MMORPG $ 1, % $ 1, % $ (18) (1)% PC and other Sony PlayStation Sony PlayStation (139) (80) Microsoft Xbox 360 1, Nintendo Wii (176) (30) Total console 2, , Sony PlayStation Portable (32) (67) Nintendo Dual Screen (28) (14) Total handheld (60) (25) Total Activision and Blizzard 4, , Distribution: Total Distribution (45) (11) Total platform mix net revenues 4, , Other (1) NM Total consolidated GAAP net revenues 4, , Change in Deferred Net Revenues 1 Activision and Blizzard: MMORPG 191 (93) PC and other Sony PlayStation Microsoft Xbox Nintendo Wii (16) (2) Total console Nintendo Dual Screen Total changes in deferred net revenues Other (1) Non-GAAP Net Revenues by Segment/Platform Mix Activision and Blizzard: MMORPG 1, , PC and other Sony PlayStation Sony PlayStation (139) (80) Microsoft Xbox 360 1, , (93) (8) Nintendo Wii (190) (33) Total console 2, , (334) (12) Sony PlayStation Portable (32) (67) Nintendo Dual Screen (20) (10) Total handheld (52) (21) Total Activision and Blizzard 4, , Total Distribution (45) (11) Total non-gaap net revenues 2 $ 4, % $ 4, % $ 28 1 % 1 We provide net revenues including (in accordance with GAAP) and excluding (non-gaap) the impact of changes in deferred net revenues and other. 2 Total non-gaap net revenues presented also represents our total operating segment net revenues.

10 FINANCIAL INFORMATION For the Three Months And Year Ended December 31, 2010 and 2009 Three Months Ended GAAP Net Revenues by Geographic Region North America $ % $ % $ (25) (3)% Europe (110) (15) Asia Pacific Total consolidated GAAP net revenues 1, , (130) (8) Change in Deferred Net Revenues 1 North America Europe Asia Pacific Total changes in net revenues 1, Non-GAAP Net Revenues by Geographic Region North America 1, , Europe 1, , (41) (4) Asia Pacific Total non-gaap net revenues 2 $ 2, % $ 2, % $ 53 2 % Year Ended GAAP Net Revenues by Geographic Region North America $ 2, % $ 2, % $ % Europe 1, , (55) (3) Asia Pacific Total geographic region net revenues 4, , Other (1) NM Total consolidated GAAP net revenues 4, , Change in Deferred Net Revenues 1 North America Europe Asia Pacific Total changes in net revenues Other (1) Non-GAAP Net Revenues by Geographic Region North America 2, , Europe 1, , (120) (6) Asia Pacific Total non-gaap net revenues 2 $ 4, % $ 4, % $ 28 1 % 1 We provide net revenues including (in accordance with GAAP) and excluding (non-gaap) the impact of changes in deferred net revenues. 2 Total non-gaap net revenues presented also represents our total operating segment net revenues.

11 SEGMENT INFORMATION For the Three Months And Year Ended December 31, 2010 and 2009 Three Months Ended Segment net revenues: Activision (i) $ 1, % $ 1, % $ (160) (8)% Blizzard (ii) Distribution (iii) (28) (13) Operating segment total 2, , Reconciliation to consolidated net revenues: Net effect from deferral of net revenues (1,121) (79) (938) (60) Consolidated net revenues $ 1, % $ 1, % (130) (8) Segment income from operations: Activision (i) $ 599 $ 712 (113) (16) Blizzard (ii) Distribution (iii) Operating segment total Reconciliation to consolidated operating income (loss): Net effect from deferral of net revenues and related cost of sales (859) (724) Stock-based compensation expense (37) (47) Restructuring 1 6 Amortization of intangible assets and purchase price accounting related adjustments (77) (142) Impairment of intangible assets (326) (409) Consolidated operating (loss) $ (397) $ (432) $ 35 (8)% Operating margin from total operating segments 35% 35% Year Ended Segment net revenues: Activision (i) $ 2, % $ 3, % $ (387) (12)% Blizzard (ii) 1, , Distribution (iii) (45) (11) Operating segment total 4, , Reconciliation to consolidated net revenues: Net effect from deferral of net revenues (356) (8) (497) (12) Other (iv) Consolidated net revenues $ 4, % $ 4, % Segment income from operations: Activision (i) $ 511 $ 663 (152) (23) Blizzard (ii) Distribution (iii) (6) (38) Operating segment total 1,371 1, Reconciliation to consolidated operating income (loss): Net effect from deferral of net revenues and related cost of sales (319) (383) Stock-based compensation expense (131) (154) Restructuring (3) (23) Amortization of intangible assets and purchase price accounting related adjustments (123) (259) Impairment of intangible assets (326) (409) Integration and transactions costs --- (24) Other (iv) --- (8) Consolidated operating income (loss) $ 469 $ (26) $ 495 NM% Operating margin from total operating segments 29% 26% (i) Activision Publishing ( Activision ) publishes interactive entertainment products and contents. (ii) Blizzard Blizzard Entertainment, Inc. and its subsidiaries ( Blizzard ) publishes PC games and online subscription-based games in the MMORPG category. (iii) Activision Blizzard Distribution ( Distribution ) distributes interactive entertainment software and hardware products. (iv) Other represents Non-Core activities, which are legacy Vivendi Games divisions or business units that we have exited, divested or wound down as part of our restructuring and integration efforts as a result of the Business Combination. Prior to July 1, 2009, Non-Core activities were managed as a stand alone operating segment; however, in light of the minimal activities and insignificance of Non-Core activities, as of that date we ceased their management as a separate operating segment and consequently, we are no longer providing separate operating segment disclosure.

12 OUTLOOK For the Quarter Ending March 31, 2011 and Year Ending December 31, 2011 GAAP to Non-GAAP Reconciliation (Amounts in millions, except per share data) Outlook for Outlook for Three Months Ending Year Ending March 31, 2011 December 31, 2011 Net Revenues (GAAP) $ 1,280 $ 3,950 Excluding the impact of: Change in deferred net revenues (a) (640) (50) Non-GAAP Net Revenues $ 640 $ 3,900 Earnings Per Diluted Share (GAAP) $ 0.28 $ 0.56 Excluding the impact of: Net effect from deferral in net revenues and related cost of sales (b) (0.26) 0.01 Stock-based compensation (c) Amortization of intangible assets (d) Restructuring expenses (e) Non-GAAP Earnings Per Diluted Share $ 0.07 $ 0.70 (a) Reflects the net change in deferred net revenues. (b) Reflects the net change in deferred net revenues and related cost of sales. (c) Reflects expense related to stock-based compensation. (d) Reflects amortization of intangible assets. (e) Reflects expenses relating to the restructuring of our Activision Publishing operations. The per share adjustments are presented as calculated, and the GAAP and non-gaap earnings (loss) per share information is also presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding.